Hero FinCorp

Hero FinCorp’s Possible Strategy For Raising Rs 4,000 Crore Via Its IPO

Hero FinCorp

Hero FinCorp, a financial service arm of India’s two-wheeler giant Hero MotoCorp, announced its plans to raise a whopping amount of Rs 4,000 via its Initial Public Offering(IPO). As per the rumours in the market, the company is expected to launch its IPO in 2024. For this, Hero FinCorp also shortlisted the eight investment banks, which will help it launch its IPO. 

Since the news is important for the company and its investors, various questions arise amid Hero FinCorp’s plan to raise new funds. You might be curious to know how the company will be raising this amount. In this blog, we will discuss the possible plans of Hero FinCorp for raising new funds via IPO.

Details Of Hero FinCorp IPO

Hero FinCorp’s IPO is creating hype in the financial market and is expected to have approximately Rs 4,000 crore. As per the report shared by the Mint, the company might launch its mega IPO in 2024. The company’s officials also confirm that their plan will largely depend on the market conditions and investors’ sale strategies. 

In addition, the company also shortlisted the eight investment banks that will serve as advisors. The names of the investment banks are as follows:

  • ICICI Securities
  • JM Financial
  • Bofa Securities
  • HSBC Securities
  • UBS
  • SBI Capital
  • Jefferies
  • HDFC

The proposed IPO of Hero FinCorp Ltd will comprise a combination of primary and secondary share issuance. With this approach, the company will not only raise growth capital but also provide an exit strategy for existing investors.

Possible Strategy Of HeroFinCorp To Raise Rs 4,000 Crore Via IPO

Hero FinCorp is in preparation to officially get listed on the Stock Exchange with its IPO of Rs 4,000 crore. For this, the company has various strategies in place which will allow it to follow the predicted timeline of an IPO. Currently, retail investors only invest in Hero FinCorp pre-IPO shares, which are available in the unlisted share market.

Presently, the most crucial metric every investor seeks is Hero FinCorp share price, which keeps changing and depends on market conditions. However, IPO shares of Hero FinCorp can be multibagger for investors if they have a good understanding of its IPO structure. Let’s see Hero FinCorp’s possible plans below:

New Investors

The new investment can aid Hero FinCorp to raise Rs 4,000 crore with the help of its IPO. Although the company already shortlisted the eight investment banks, there are rumours that it may invite new investors, including institutional investors, to raise a significant portion of the funds. The funds raised by Hero FinCorp till now are mainly through institutional and high-net-worth investors. It is interesting to see whether companies rely on new investors or not.

Public Issue Shares

Like any other company, Hero FinCorp’s major strategy to raise funds via its IPO is offering public-issued shares for sale. There is a chance that companies will incorporate it to raise the majority of the amount and invite retail investors to invest in Hero FinCorp IPO shares. However, it is also interesting to see how Hero FinCorp share price will change during the IPO.

Fundraising Round

It is probably the least-expected strategy for Hero FinCorp Ltd. The company might participate in the new fundraising round. Since it has various existing private equity investors, including Credit Suisse, Apollo Global, and Chrys Capital, Hero FinCorp might raise new funds by giving its equity shares to these investors. It will help the company cover the majority of IPO funds and make the less available equity shares for public trading.

Explore Investment Opportunity In Hero FinCorp With Stockify

Hero FinCorp is one of the fastest-growing financial service companies providing various investment opportunities to retail investors. Whether it’s investing in an IPO, which might be launched next year or Hero FinCorp unlisted shares, you can become a part of a company’s growth. If you are looking to invest in Hero FinCorp Ltd, we suggest you start with its pre-IPO stocks. These shares involve less risk and provide a great way for investment diversification. 

At Stockify, which is India’s best-unlisted shares broking platform, we help retail investors like you to buy trending unlisted shares hassle-free. Here, you will get complete company information, including Hero FinCorp share price, EBITDA, equity per share, etc. Ready to reap the ultimate benefits of investing in unlisted shares? Connect with our experts today!

FAQs

1- What is the valuation of Hero FinCorp’s upcoming IPO?

The proposed IPO of Hero FinCorp is approximately Rs 4,000 crore, as per the information shared by the company. To stay updated with the IPO news, subscribe to Stockify.

2- Will IPO size determine Hero FinCorp’s market valuation?

The IPO size or price is based on the company’s market valuation. In the case of Hero FinCorp, its market valuation largely decides the IPO size.

3- How will Hero FinCorp raise Rs 4,000 crore via its Initial Public Offering(IPO)?

As per the reports, Hero FinCorp will be inviting investors and also offering its public rights issue for sale. These are some of the ways through which the company is expecting to raise the needed Rs 4,000 crore via its IPO.

4- Can I invest in HeroFinCorp IPO shares now?

You can’t invest in Hero FinCorp IPO shares unless the company makes its shares available for public trading. However, you can easily invest in Hero FinCorp unlisted shares for now. To check Hero FinCorp share price, connect with us.

5- Do I need to be an expert in trading before investing in pre-IPO shares?

You can start trading in unlisted shares as a newbie retail investor with the help of Stockify. Our expert brokers will guide you with every step and help you make a profitable investment.

Table of Contents

Hero FinCorp is in talks with investment banks to raise Rs 4000 crore via its IPO, which might launch next year.

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Piyush Jhunjhunwala
CA, CPA, Ex. PepsiCo, Reckitt, Coty
CEO & Founder
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Rahul Khatuwala
Rahul Khatuwala
Ex. Wipro & Finaco Founder
Co-Founder
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